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Penske Automotive (PAG) Gains But Lags Market: What You Should Know
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Penske Automotive (PAG - Free Report) closed at $102.18 in the latest trading session, marking a +0.16% move from the prior day. This move lagged the S&P 500's daily gain of 0.51%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.1%.
Prior to today's trading, shares of the auto dealership chain had gained 6.96% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.62% and the S&P 500's gain of 5.51% in that time.
Investors will be hoping for strength from Penske Automotive as it approaches its next earnings release. On that day, Penske Automotive is projected to report earnings of $3.93 per share, which would represent year-over-year growth of 73.89%. Meanwhile, our latest consensus estimate is calling for revenue of $6.36 billion, up 10.1% from the prior-year quarter.
PAG's full-year Zacks Consensus Estimates are calling for earnings of $15.03 per share and revenue of $26.87 billion. These results would represent year-over-year changes of -1.64% and +5.14%, respectively.
It is also important to note the recent changes to analyst estimates for Penske Automotive. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 6.7% higher within the past month. Penske Automotive currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Penske Automotive currently has a Forward P/E ratio of 6.79. For comparison, its industry has an average Forward P/E of 6.69, which means Penske Automotive is trading at a premium to the group.
It is also worth noting that PAG currently has a PEG ratio of 0.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PAG's industry had an average PEG ratio of 0.41 as of yesterday's close.
The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 17, which puts it in the top 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PAG in the coming trading sessions, be sure to utilize Zacks.com.
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Penske Automotive (PAG) Gains But Lags Market: What You Should Know
Penske Automotive (PAG - Free Report) closed at $102.18 in the latest trading session, marking a +0.16% move from the prior day. This move lagged the S&P 500's daily gain of 0.51%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.1%.
Prior to today's trading, shares of the auto dealership chain had gained 6.96% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.62% and the S&P 500's gain of 5.51% in that time.
Investors will be hoping for strength from Penske Automotive as it approaches its next earnings release. On that day, Penske Automotive is projected to report earnings of $3.93 per share, which would represent year-over-year growth of 73.89%. Meanwhile, our latest consensus estimate is calling for revenue of $6.36 billion, up 10.1% from the prior-year quarter.
PAG's full-year Zacks Consensus Estimates are calling for earnings of $15.03 per share and revenue of $26.87 billion. These results would represent year-over-year changes of -1.64% and +5.14%, respectively.
It is also important to note the recent changes to analyst estimates for Penske Automotive. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 6.7% higher within the past month. Penske Automotive currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Penske Automotive currently has a Forward P/E ratio of 6.79. For comparison, its industry has an average Forward P/E of 6.69, which means Penske Automotive is trading at a premium to the group.
It is also worth noting that PAG currently has a PEG ratio of 0.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PAG's industry had an average PEG ratio of 0.41 as of yesterday's close.
The Automotive - Retail and Whole Sales industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 17, which puts it in the top 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PAG in the coming trading sessions, be sure to utilize Zacks.com.